Dialogue with Frank Zhang, Executive Director of OKX Hong Kong: Hong Kong's virtual asset sector will develop in all directions in the future

On the first weekend of April, the 2024 Wanxiang Web3 Carnival officially kicked off at the Hong Kong Convention and Exhibition Center. BlockBeats had the honor of interviewing Frank Zhang, the Executive Director of OKX Hong Kong, for the first time to talk about the situation and changes one year after the implementation of the new crypto policy in Hong Kong.

Frank is currently responsible for overseeing the business growth and operations of OKX Hong Kong, while leading the business strategy of the trading platform. The goal is to lead OKX Hong Kong to provide industry-leading virtual asset services to the local market in Hong Kong, while complying with the strict regulatory compliance standards under the Hong Kong Virtual Asset Service Provider (VASP) system. Frank has more than ten years of experience in the traditional financial field. He has worked at well-known financial institutions such as Daiwa Capital, CITIC CLSA Securities and Liquidnet Asia, leading the design and implementation of complex algorithmic trading strategies for these companies.

During the interview, Frank expressed his confidence in Hong Kong's new virtual asset policy and OKX Hong Kong, and believed that there are unlimited opportunities in the crypto field. The following is the full content of this interview:

BlockBeats: We can see from your LinkedIn that you have a very rich resume. You have worked in many well-known financial institutions, but finally chose to join the cryptocurrency field. Can you talk about what attracted you to join this industry?

Frank:Thank you very much for the invitation from BlockBeats. For me, the attraction of the cryptocurrency field lies in its continuous innovation. As a dynamically developing field, the crypto industry is always pushing technology and concepts to break through existing boundaries and open up unlimited imagination. From the history of currency development, humans are always pursuing new ways of trading, from shells to paper money to today's digital currency. It is precisely this characteristic of continuous innovation and progress that has become the main reason for me to join the crypto industry. And I chose to join OKX not only because it is a very mature and global enterprise, but also because we have very similar ideas about the application and development of innovative technologies. Because they were attracted by the concept of OKX, many of our colleagues also switched from Internet companies and traditional finance.

Blockbeats: So, after coming to the crypto field, what do you think is the biggest difference from traditional finance?

Frank: The main difference between the crypto field and traditional finance lies in its high speed of innovation and its reliance on technology. Since the crypto market is developing very fast, practitioners must continue to learn, develop and improve new technologies to adapt to new changes. In addition, cryptocurrency emphasizes decentralization, which to some extent reduces certain thresholds and restrictions in traditional finance.

Blockbeats: You are now an executive director at OKX Hong Kong. Can you share your main responsibilities?

Frank：As one of the executive directors of OKX Hong Kong, my main responsibilities are to work with the team to improve and enhance our trading products, ensure that our services meet regulatory requirements, and also play a role in marketing and user education. We are committed to providing users with a trading platform that is safe, compliant, and has a good user experience.

Blockbeats: Since last year, Hong Kong has been committed to promoting Web 3, and the new licensing policy for virtual asset service providers has been implemented for nearly a year. So far, about 22 cryptocurrency trading platforms have submitted license applications. So how do you view Hong Kong's role in the global crypto market?

Frank：As one of the world's international financial centers, Hong Kong has a mature financial services system and a sound regulatory framework, which provides a stable and reliable development environment for the virtual asset market. The Hong Kong government is open to cryptocurrency and blockchain technology, and is actively promoting the continuous improvement of relevant regulations, which will help attract more international investors and companies to develop in Hong Kong. Therefore, I think the entire ecosystem will be built up as a result, and I am confident that OKX Hong Kong will open up wider cooperation.

Blockbeats: When Hong Kong first started to promote the development of the Web 3 industry, the crypto field had very high expectations for this development direction. How important do you think Web 3 is to Hong Kong?

Frank:Based on Hong Kong's own economic development history, it has a strong and solid foundation in finance and rich talent reserves. At the same time, all parts of the world are vying to join the Web3 industry competition to meet the new wave of technology. Hong Kong should continue to seize the opportunity to strive to play its own advantages and work together with industry builders to create a better future. I am confident of this.

Blockbeats: Recently, there have been rumors that some financial technology companies in Hong Kong will plan to issue Hong Kong dollar stablecoins. How much impact do you expect the stablecoin licensing system to have on Hong Kong's cryptocurrency investment market after it is implemented in the future?

Frank: Judging from the recent situation in the US market, ETFs are obviously a large market, but Hong Kong's stablecoin policy is still in the early stages of layout. In addition to the newly launched stablecoin sandbox and public consultation on the regulatory framework, details such as licensing requirements have not been fully finalized. Based on the above background, I believe that Hong Kong's stablecoin policy requires cooperation from multiple parties. Moreover, we are very confident that with the support and leadership of the Hong Kong government and regulatory agencies, we can promote relevant development in a more orderly manner, so that licensed stablecoin issuers can quickly launch stablecoins in the Hong Kong market.

Blockbeats: What will the future development of Hong Kong and OKX Hong Kong focus on?

Frank: First, compliance and regulatory requirements must be met to allow users to use it with confidence. Second, continuous innovation. Compliance and innovative technology may not conflict, but complement each other. For example, Proof of Reserve uses on-chain technology (including privacy protection technology and the application of zero-knowledge technology) to prove that the funds deposited by users on the trading platform are safe. Third, we must focus on the user experience, so that users feel that in addition to compliance and reliability, we can also provide a user experience that keeps pace with the times and is smooth and convenient.

Blockbeats: In the next few years, what new developments do you think Hong Kong will have in the virtual asset industry?

Frank: First, one of the development goals of the industry and regulators is seamless connection. Seamless docking refers to how to allow users to seamlessly switch between various payment and investment modes (such as seamlessly exchanging fiat currency for virtual assets, or how to use virtual assets in the account to apply to real-life payment scenarios). Second, it is to continuously provide user education and provide individual investors in the market with information on opportunities for virtual asset investment, risk management, asset custody security, blockchain technology and network security. Third, it is continuous innovation. For example, the combination of Web3 and AI is a good breakthrough point.

Blockbeats: What new developments do you expect in the field of encryption technology in Hong Kong in 2024 and 2025?

Frank: I think the field of encryption technology in Hong Kong will usher in an explosive expansion in all aspects and multiple fields. For example, the most talked about thing last year was how AI can be combined with Web3 and how NFT applications can be better implemented, so for ordinary investors, they should learn these new knowledge as soon as possible.

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